More than A$33 billion ($NZ43b)was wiped from the value of the Australian sharemarket on Thursday, which fell in line with other bourses around the world on renewed concerns about a global economic slowdown.

The benchmark S&P/ASX200 index fell 106.9 points, or 2.27 per cent, to 4,600.4 points, while the broader All Ordinaries index lost 105.4 points, or 2.2 per cent, at 4,683.2 points.

On the ASX 24, the June share price index futures contract was 103 points lower at 4,606 points, with 44,494 contracts traded.

CMC Markets sales trader Ben Taylor said that despite better than expected retail sales figures for Australia in April, which were released on Thursday, investors were focused on a slowdown in global economic growth.

"A lot of the drive is coming from overseas markets at the moment," he said.

"There was a shocking set of (manufacturing) PMI data (purchasing managers index, used to measure strength in the sector) for the UK, China and euro zone, and then US markets fell last night... Moody's downgrade of Greek debt put the nail in the coffin."

Jobs and manufacturing data showing deep weaknesses in the US economy sent the US stock market plunging on Thursday, wiping out the gains of previous days.

The Dow Jones Industrial Average dropped 279.14 points, or 2.22 per cent, to 12,290.65.

Mr Taylor said the various data did not show a good picture of growth.

He said the slowdown had come at a time when markets were expected to be kicking into a higher gear of recovery.

Mr Taylor said he expected the negative sentiment to last several weeks until bargain-seekers returned to the market.

Among resource stocks on the local bourse BHP Billiton fell 98 cents to $43.55.

Rio Tinto was down A$1.45 at A$80.10 as it said a tie-up with Chinalco, China's largest alumina producer, would give it unprecedented access to explore resource-hungry China for copper and other minerals.

Among the major banks, National Australia Bank dumped A$1.64, or 6.29 per cent, to A$24.43 as it went ex dividend and investors worried over the bank's European exposures.